/k US Producer Price Index Pand A: The Produ or Price Indec (196610 1025 1000 87

Question

/k US Producer Price Index Pand A: The Produ or Price Indec (196610 1025 1000 875 0950 0825 0900 875 0850 0825 21975 1978 Panel B: Finst Difemce of the PP 004 042 0 02 004 ODS 2s3 A.) The following graphs show the PPI for US 1960-2002, and the First Difference of the PPI. Comment on the graphs above, clearly stating why they were constructed and what you can conclude from them. gno B.) Apply the Box-Jenkins Methodology to the table below, and decide on an appropriate model that best fits the data.

Explanation / Answer

The Producer Price Index (PPI) is a price index that measures an average changes in prices received by domestic producer for their output. In US PPI is published by Bureau of Labor statistics.The PPI follows price changes for every goods-producing industry in the domestic economy, including agriculture, electricity and natural gas, forestry, fisheries, manufacturing, and mining.

Benefits of Producer Price Index-

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